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Thursday, September 19, 2024

Bobba Logistics Allocates ₹100 Crore for Next Phase of Micro-Fulfillment Expansion

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In Short:

Bobba Logistics, part of Bobba Aviation, is expanding in Bengaluru by setting up a new micro-fulfilment facility, investing ₹100 crore for Phase 2, expected to finish by FY25. Their current center has operated since March 2023. Micro-fulfilment helps small businesses with efficient logistics. Bobba serves over 15 clients and plans to grow in southern cities while aiming to triple its revenue in 3-4 years.


Exciting Expansion for **Bobba Logistics** in Bengaluru

In a bold move to bolster its presence in Bengaluru, **Bobba Logistics**, the dynamic third-party logistics (3PL) arm of **Bobba Aviation**, is set to launch a new micro-fulfillment facility. The company has committed a substantial investment of ₹100 crore for the second phase of this warehousing initiative, with a completion date projected for the end of FY25.

Current Operations and Future Plans

Since March 2023, **Bobba Logistics** has been operational at its micro-fulfillment center situated on **Bellary Road**, just 12 km away from **Bengaluru International Airport**. With plans on the horizon, the company is excited to introduce another center in **Devanahalli** during Phase 2, aiming for its operational launch in the fourth quarter of 2025.

Empowering MSMEs Through Micro-Fulfillment

The significance of micro-fulfillment centers cannot be overstated, especially for **MSMEs**. **Chandrakala Bobba**, Director of **Bobba Group**, highlighted how they provide organized logistics that ensure smooth, cost-effective, and sustainable warehousing solutions. She states, “As we move forward, it is clear that traffic will continue to increase. In this context, micro-fulfillment centers serve as essential hubs, helping companies save on transit time, which will further enhance operational growth.”

Tailor-Made Solutions for Diverse Needs

**Balajee Bobba**, another Director at **Bobba Group**, shared insights into how these centers can cater to the specific inventory management needs of customers. He elaborated, “Instead of committing to a larger space of 200,000 sqft or more for a single customer, businesses can utilize micro-fulfillment centers to optimize their storage and distribution.”

He also provided an example: “One customer might need our services for three months, while another may only require them for one month. We can customize the space and services accordingly.”

Diverse Clientele and Future Expansion

Currently, **Bobba Logistics** serves a varied clientele of over 15 national and international **MNCs**, spanning different sectors. These customers include freight forwarders, airlines, major pharmaceutical manufacturers, and perishable exporters focusing on fruits, vegetables, and automobile spare parts.

Moreover, **Bobba** has plans to extend its reach to other southern cities such as **Kochi**, **Chennai**, and **Hyderabad** before setting its sights on northern markets, according to **Balajee**.

Ambitious Growth Projections

₹25 crore and has ambitious goals to triple that figure in the next 3 to 4 years. “We project a growth rate of 8 percent year-on-year (YoY) in the first three years,” Balajee noted with optimism.


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